Loan for Malls: Learn About Interest Rate, Eligibility and Repayment

Nov 18, 2020

Loan for Malls: Learn About Interest Rate, Eligibility and Repayment

In the last decade, India’s retail sector has witnessed unprecedented growth. With rapid digitisation, an overall increase in disposable income as well as expanding urbanisation, the country’s retail sector was projected to reach $1 Trillion by 2020, as per a report published in the Deccan Herald.

However, as per analysts, this is just the beginning.

With the emergence of malls across the Indian subcontinent, India’s retail sector is expected to expand at an even faster pace. As a result, investing in starting a mall, even at a small-scale can be an excellent business proposition.

Especially with business loans for malls provided through various avenues, one can consider malls as their next entrepreneurial venture. Financing the running of a mall is another requisite that may prompt you to avail these loans.

Malls in India: Why Do They Make for Good Business Opportunities?

Malls are a fairly new concept in India, given that these business models are only a couple of decades old. However, in the last twenty odd years, there has been a mushrooming effect with air-conditioned shopping complexes springing up everywhere; with more and more Indians embracing the idea of availing all things under one roof.

Standing in 2020, malls have found success even in Tier II and Tier III cities in India. Thus, for those looking to venture into retail selling with large scale plans, or expanding their existing venture, it can be a suitable time to invest in these propositions.

Now, as for financing the business, several avenues will require substantial investment right at the onset. These include –

  • Acquiring requisite licences and permission to construct the mall.
  • Market survey and research costs.
  • Investing in land in an area suitable for the business.
  • Setting up the infrastructure.
  • Cost of getting the project sanctioned from the municipality.
  • Construction costs, including that of the mall interiors.
  • Hiring competent employees.
  • Marketing and promotional costs.
  • Working capital to meet expenses like utility bills, maintenance, etc.

The list of expenses is quite long. Nonetheless, with the right commercial loan for malls, you can meet these expenses without much hassle.

Types of Business Loans for Malls that You Can Avail –

Starting a mall even at a small scale will require sizable expenses on your part. Or, if you need to renovate or expand an existing one, you must also be ready to incur sizable costs.

To meet these, you can apply for the following loans for malls

  • Commercial property loans –

As the name suggests, these loans are available exclusively for the purchase or construction of commercial properties in India. These are big-ticket loans, which can be utilised to adequately fund the cost of purchasing an existing building or constructing a new one for your mall.

However, this loan imposes severe limitations, as the amount availed can be utilised to fund the purchase of the building merely.

  • Loans against property –

It is a type of a secured loan, wherein you can avail an advance against your residential or commercial property. These can be effective options since they do not impose any end-use restriction and can be utilised to fund any aspect of starting the mall business.

Nonetheless, borrowers have to satisfy a few loan for malls eligibility criteria in this case, which might deter their chances of availing this advance.

  • Gold loans –

As its name suggests, this business loan for malls can be availed by pledging your gold as collateral. Since the amount you can avail as loan depends on the value of the gold you pledge, you stand to receive a high percentage of your collateral’s worth.

Furthermore, since these loans do not impose any restriction in usage, they can be utilised to fund any requirement for your mall – starting from infrastructural costs to working capital requirement, marketing or hiring expenses.

Even though gold has always been a popular mode of financial lending in India, the true potential of this sector has been untapped until very recently. With the emergence of digital lenders like Rupeek Fintech Pvt. Ltd., the process of availing gold loans for borrowers have been quite simplified along with many other advantages.

Take a look at a few of them!

Why does a Gold Loan Make for a Convenient Option to Avail Capital?

These loans come equipped with several attractive features which make them the most comprehensive option to avail finances for starting a mall. Some of these are as follows –

  1. Doorstep loan facility with instant disbursal

The process ranging from applying for the loan to availing it is super-fast with Rupeek. You simply need to undertake the application process through the lender’s app or website to apply. Subsequently, a loan manager will be appointed to visit your house and complete formalities like gold valuation and KYC registration. If everything is in order, your loan will be approved and disbursed to your bank account immediately. The entire process only takes 30 minutes of your time.

It is as fast as that!

  1. Complete safety of your asset

Are you worried about the safety of your gold?

Well, to alleviate your concerns, the loan manager will only leave your house with the gold after you have received the loan amount in your bank account. The gold will then be transferred in a GPS-trackable bag and deposited for storage in the nearest partner bank’s safety vault located within 3 km. It will be retrieved, only after the completion of your loan tenure, when you can re-possess it after complete repayment. Furthermore, the gold will be insured for the duration of your loan tenure.

  1. Avail the highest loan to value

Loan to value signifies the maximum amount of funds a lender is ready to extend against the total value of the asset you have pledged. With Rupeek, you can avail the highest LTV against your gold’s value, allowing you to acquire a substantial amount that you can invest in your business venture.

  1. Lowest interest rates and easy repayment

Since it is a secured loan, you can enjoy the lowest interest rates on your loan, which can significantly help to reduce your repayment burden.

Also, as for the gold loan for malls repayment process – you will only need to pay the interest amount against your loan each month, with principal repayment deferred until the tenure’s end. It makes loan repayment hassle-free and allows you the scope to bear minimal financial burden during the loan tenure. If lacking funds immediately, you can also defer the entire repayment liability until the tenure’s end and make bullet payment at a go.With such benefits and more, a gold loan serving as a business loan for mall can undoubtedly help your business plan to gain the much-needed financial leverage. However, make sure to check the gold loan for malls online apply process carefully before making the application to avoid any unnecessary hassles in due course.

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